This paper focuses on the use of material planning methods to control material flow to inventories of purchased items. The first sub-objective is to evaluate the
perceived planning performance of material planning methods used to control material flows in different inventory types in manufacturing and distribution
companies. The second sub-objective is to evaluate the difference in perceived planning performance depending on the way planning parameters are determined and the methods used. Five material planning methods are studied: the re-order point method, the fixed order interval method, run-out time planning, Kanban and MRP. Our analysis is based on survey data from 153 manufacturing and 53 distribution companies. Findings conclude that the use of material planning methods differs depending on where along the material flow they are applied, whether the inventory is located in manufacturing or in distribution operations
and between companies of various sizes. The modes of applying a material planning method affect its perceived performance. In particular, the way of determining and the review frequency of safety stocks and lead times have great
importance for the planning performance of MRP methods, while the determination and review of order points, review frequencies and run-out times were important for re-order point methods.

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BibTeX @article{Jonsson2008,author={Jonsson, Patrik and Mattsson, Stig-Arne},title={Inventory management practices and their implications on perceived planning performance},journal={International Journal of Production Research},volume={46},issue={7},pages={1787-1812},abstract={This paper focuses on the use of material planning methods to control material flow to inventories of purchased items. The first sub-objective is to evaluate the
perceived planning performance of material planning methods used to control material flows in different inventory types in manufacturing and distribution
companies. The second sub-objective is to evaluate the difference in perceived planning performance depending on the way planning parameters are determined and the methods used. Five material planning methods are studied: the re-order point method, the fixed order interval method, run-out time planning, Kanban and MRP. Our analysis is based on survey data from 153 manufacturing and 53 distribution companies. Findings conclude that the use of material planning methods differs depending on where along the material flow they are applied, whether the inventory is located in manufacturing or in distribution operations
and between companies of various sizes. The modes of applying a material planning method affect its perceived performance. In particular, the way of determining and the review frequency of safety stocks and lead times have great
importance for the planning performance of MRP methods, while the determination and review of order points, review frequencies and run-out times were important for re-order point methods.
},year={2008},keywords={Inventory management; Planning environment; Planning parameters;},}

RefWorks RT Journal ArticleSR ElectronicID 68262A1 Jonsson, PatrikA1 Mattsson, Stig-ArneT1 Inventory management practices and their implications on perceived planning performanceYR 2008JF International Journal of Production ResearchVO 46IS 7SP 1787OP 1812AB This paper focuses on the use of material planning methods to control material flow to inventories of purchased items. The first sub-objective is to evaluate the
perceived planning performance of material planning methods used to control material flows in different inventory types in manufacturing and distribution
companies. The second sub-objective is to evaluate the difference in perceived planning performance depending on the way planning parameters are determined and the methods used. Five material planning methods are studied: the re-order point method, the fixed order interval method, run-out time planning, Kanban and MRP. Our analysis is based on survey data from 153 manufacturing and 53 distribution companies. Findings conclude that the use of material planning methods differs depending on where along the material flow they are applied, whether the inventory is located in manufacturing or in distribution operations
and between companies of various sizes. The modes of applying a material planning method affect its perceived performance. In particular, the way of determining and the review frequency of safety stocks and lead times have great
importance for the planning performance of MRP methods, while the determination and review of order points, review frequencies and run-out times were important for re-order point methods.
LA engLK http://publications.lib.chalmers.se/records/fulltext/68262/local_68262.pdfOL 30